According to Charles Edwards (@caprioleio), quantum computing is Bitcoin’s biggest existential threat and, once a replacement is selected, the ecosystem would have roughly 12 months to migrate, placing urgency on protocol choices that traders should monitor; source: Charles Edwards on X, Aug 21, 2025. Bitcoin relies on ECDSA over secp256k1 for transaction signatures, which is vulnerable to sufficiently powerful quantum attacks such as Shor’s algorithm, making signature replacement the core mitigation; source: NIST Post-Quantum Cryptography program and Bitcoin.org Developer Guide. NIST has standardized post-quantum signature schemes including CRYSTALS-Dilithium and SPHINCS+, offering candidate pathways for migration that Bitcoin developers could evaluate; source: NIST Post-Quantum Cryptography standards 2022–2024. Traders should watch for any Bitcoin Improvement Proposal introducing post-quantum signatures and activation timelines, as protocol changes require broad consensus and staged rollout; source: Bitcoin Improvement Proposals repository. Coins reveal public keys when spent, so UTXOs with exposed public keys carry higher quantum-theft risk under a breakthrough, informing on-chain risk assessment; source: Bitcoin.org Developer Guide and Bitcoin Wiki.

According to BitMEX Research, the Bitcoin (BTC) Lightning Network faces significant security risks from future quantum computers, which could break its underlying ECDSA cryptography. The research outlines a detailed proposal for making Lightning Network transactions quantum-resistant by implementing post-quantum cryptography (PQC) standards, such as a one-time signature scheme. While this proposed upgrade could lead to larger transaction sizes and increased complexity, BitMEX Research emphasizes that it is a crucial measure to safeguard the long-term security of funds transacted on Bitcoin's primary layer-2 scaling solution.

According to @deanmlittle, ECDSA (Elliptic Curve Digital Signature Algorithm) is identified as a foundational component securing Bitcoin and other major cryptocurrencies, directly impacting trading security and transaction validation. Traders should note that ECDSA’s robustness ensures the authenticity of blockchain transactions, reducing risks of unauthorized trades and supporting market trust, as highlighted by the referenced tweet (Source: Twitter/@deanmlittle, May 9, 2025). This cryptographic standard underpins the reliability of crypto exchanges and wallets, making it essential for risk assessment and technical analysis in crypto trading.